Where Bitcoin focuses on money, Ethereum lets developers deploy self-executing contracts that power decentralised applications, stablecoins, NFTs and most of DeFi. It uses proof-of-stake to secure the network.
Key takeaways
- Ethereum is a blockchain designed to run smart contracts, which are programmes that execute automatically when conditions are met.
- Its native cryptocurrency, ether (ETH), is used to pay transaction and computation fees on the network.
- Many other tokens and decentralised applications are built on Ethereum, making it a foundation for much of the wider crypto ecosystem.
Ethereum — frequently asked questions
What is the difference between Ethereum and ether?
Ethereum is the network and platform, while ether is the cryptocurrency used to pay for activity on it.
What are smart contracts used for?
They can automate agreements such as token swaps, lending, or digital collectibles without needing a central intermediary.
This definition is educational and not financial advice. Crypto is volatile and high-risk — always do your own research.
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